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Fine wine shows stability amid market volatility

Recent trading activity 

Activity around Bordeaux remained high after the weekend, with the region accounting for 55.4% of trade. Petrus 2012, Château Mouton Rothschild 2015 and Château Cos d’Estournel 2009 were among the top-traded labels. 

Burgundy trade rose to 13.2% of the total and Champagne took 10.5% with Louis Roederer Cristal 2008 being the top-traded wine. Californian trade was boosted to 7.7% thanks to demand for Opus One 2019. 

Annualised volatility of the Liv-ex 50 and FTSE 100 

A surging US Dollar and slumping Sterling is causing havoc in global financial markets as recently examined in The Economist. 

In troubled economic waters, fine wine has traditionally proved a stable and far less volatile life raft than traditional stocks and equities. 

Year-to-date, the Liv-ex Fine Wine 50 which tracks the 10 most recent physical vintages of the Bordeaux First Growths, is up 4.3%, while the FTSE 100 is down 5.5%. 

When we last examined this topic in April last year, both indices were at roughly the same level, having recovered from the shock of the 2020 pandemic. 

However, as the chart above shows, the FTSE has remained volatile, suffering further setbacks like the Ukraine War in February 2022.  

By contrast, the Liv-ex 50 continued to make palpable gains through the post-Covid bull market of 2021 and has held its course even amid the turbulence of the last few weeks and months. 

The Liv-ex 50 index is inherently less volatile given its much narrower focus but it is demonstrative of the wider stability and liquidity offered by fine wine, especially given the much broader, more diverse scope of today’s market. 

Our up-coming Q3 report will examine the global economy and its impact on the fine wine market in more depth. 

Opportunities to buy fine wine 

There are over 20,000 LIVE offers on the exchange currently. There is also a tab specifically for blue-chip Bordeaux offers. 

Liv-ex analysis is drawn from the world’s most comprehensive database of fine wine prices. The data reflects the real time activity of Liv-ex’s 600 merchant members from across the globe. Together they represent the largest pool of liquidity in the world – currently £80m of bids and offers across 16,000 wines. Independent data, direct from the market.